Outsourcing Accounting Services
Ambition Accounting offers Outsourcing Services for companies requiring additional resources in completing important projects and tasks that exceed the ability of your in-house staff.
How can Ambition Accounting Outsourcing Help You?
Outsourcing some of your activities to Ambition Accounting can benefit your business when internal resources are over capacity.
Benefits of Outsourcing:
Cost Savings: Outsourcing can lead to noticeable cost-saving measures. This is achieved by managing and reviewing all transactions on a monthly basis to ensure your financial statements are complete and accurate. This analysis often reveals areas in the organization where costs can be reduced or where more efficient processes can be designed and implemented. Hiring a third-party also reduces labour costs associated with CPP and EI, health and other benefits, equipment and furniture and technology costs (hardware/software).
Resource Allocation: When internal resources are over capacity trying to keep the organization afloat, through outsourcing accounting services the CEO can more effectively allocate available staff resources to where it matters most strategically such as revenue-generating activities. Where a Not-for-Profit is concerned, outsourcing can allow staff to work on the organization’s core programming delivery to its members or customers.
Competitive Advantage: Focusing more resources on your core revenue-generating activities gives you the opportunity to develop new products, services or programs that can increase your advantage over your competitors. Monthly financial reports can provide you with important insights into how well your organization is performing. Being aware of the financial health of your organization can help you make better decisions and plan your next steps in creating a competitive advantage that takes your organization to the next level.
When considering what aspect of your business to outsource to Ambition Accounting, we offer services in two main areas:
Core Accounting Activities and Special Projects.
Core Accounting Activities
At Ambition Accounting, we focus on providing businesses with the accounting and bookkeeping services they require to ensure the proper flow of their accounting cycle.
Financial/Management Reporting: Once the monthly transactions have been entered and reconciled, we can prepare the monthly and quarterly income statements, balance sheets and any other financial reports for owners and senior management, which will provide key results to assist with effective decision-making.
Accounts Payable: Payables are transactions related to the credit purchase of supplies, inventory and other assets used in the normal day-to-day operations of an organization. Data entry can be time-consuming; Ambition Accounting can take care of entering all invoices and issuing payments to vendors on time, usually within a net 30-60 days depending on agreed credit terms with suppliers.
Accounts Receivable: Receivables represent the sales generated by a business. While data entry of client invoices is the easier part, the receipt of payments from customers can be challenging. In addition to preparing all billings for a client, we also provide collections services to help receive payment from customers as early as possible to avoid cash flow issues.
Payroll: Part of every business is paying its employees weekly, biweekly or bimonthly. No matter which method an organization uses, we can assist in the preparation of recurring obligations including payment to staff and filing remittances to federal and provincial bodies. We also take the responsibility of issuing annual T4 slips to employees, as well as prepare the annual T4 summary for Revenue Canada.
Cash Flow Management: Proper cash flow management is crucial for a business to succeed. An organization may have high sales volumes, but if customers are not billed on time, or even yet vendor credit obligations become due prior to collecting funds from customers, this can put a significant strain on the entire organization. To avoid finding oneself in such a predicament, we can help create a cash flow schedule that can anticipate customer payments, as well as strategic issuance of payments to suppliers and other vendors to allow for better cash flow.
Charitable Donations: Charities require the same process as most businesses, however they have an additional need to produce charitable tax receipts to their donors. Depending on the platform used to receive contributions, we can assist in preparing the necessary tax receipts and prepare regular reports with a summary of all contributions.
Some organizations may not be prepared to outsource some or all of their accounting cycle processes to a third party. However, it is common for growing companies to have staff resources quickly become overextended, especially if management decides to implement a new product, service or program. Resources can also become limited if a special project comes along, and requires significant hours to complete.
Instead of burdening current resources with a special project, it is often beneficial to consider hiring a third party to assist in the process. When your staff resources are tied up on a project, other areas such as core revenue-generating activities can be impacted. Ambition Accounting can help, by taking care of your short-term special projects to allow staff to remain focused on your core activities.
Examples of special projects we can assist with:
External Audit Preparation: Many organizations are required by different stakeholders to produce and prepare annual audited financial statements. We can assist in the pre-audit preparation by conducting an annual review of your transactions to ensure completeness and accuracy. We also prepare the necessary working papers that will be used by the auditors.
A pre-audit review can help reduce the overall costs of an audit by reducing the amount of hours necessary for an auditing firm to complete the onsite aspect of an audit.
Budgeting/Forecasting: It is important to forecast not only your revenues and direct expenses, but also your administrative costs. Establishing a sound annual budget with a 2-3 year forecast is essential and allows management to follow a set plan against which to compare actual results, and adjust activities accordingly. A budget or forecast is a valuable tool used by many owners and managers in an organization that can be reviewed on a monthly or quarterly basis.
Internal Controls: Internal controls help your staff know what procedures are implemented in your organization. If you need a review of your current controls, we can visit your offices, review your processes with users and provide recommendations that would improve efficiency, which can also lead to cost-savings in the long-term.
Data Analysis: If you require special reports to review the overall performance of your organization, we can help establish these by analyzing your available data.
Ambition Accounting can help you get organized and on track to fulfilling your financial objectives.
Contact us to discuss how Ambition Accounting can help your company.